stub Investing In Karura (KAR) - Everything You Need to Know
Connect with us

Karura Investor

Investing In Karura (KAR) – Everything You Need to Know

mm

Published

 on

Securities.io is committed to rigorous editorial standards. We may receive compensation when you click on links to products we review. Please view our affiliate disclosure. Trading involves risk which may result in the loss of capital.

Karura (KAR) seeks to fill an available niche in the Polkadot ecosystem. This all-in-one DeFi network combines a low-fee AMM DEX, next-gen stablecoin, and a suite of financial applications to empower users. The network leverages the advanced Kusama network to provide these services while remaining scalable. Here’s everything you need to know about Karura.

What Problems Does Karura Attempt to Fix?

One of the main issues that Karura was built to alleviate was developer onboarding. The protocol provides full EVM compatibility. This strategy streamlines the process of converting or expanding Ethereum Dapps into the Karura ecosystem.

Karura (KAR) - Dapp

Karura (KAR) – Dapp

High Fees

Karura must support Ethereum developers as it’s the largest developer community in the blockchain space. Ethereum has had some issues such as congestion and high fees which have led developers to seek out alternatives. Karura eliminates scalability concerns through its technical structure. As such, the network charges minimal gas fees compared to other smart contract programmable blockchains in operation today.

Lack of Flexibility

Another issue that many fail to address is rewarded flexibility. Karura gives you the option to take your rewards in a variety of tokens. This strategy is helpful because it saves you time and fees that would be necessary to convert the tokens if the rewards come in a preset format like most protocols. These added savings can add up over time giving Karura traders a significant advantage over other DEX users.

Locked Liquidity

Staking is hugely popular in the DeFi sector. It’s easy to do, and low risk compared to trading. The only real issue with staking is that it locks up your liquidity. Karura enables users to stake their tokens and still keep liquidity. The protocol accomplishes this by introducing tradeable liquidity staking tokens into the mix.

Benefits of Karura

Karura provides a lot of benefits to the market. The network operates in a trustless manner that eliminates human error from the equation. The systems were optimized for the DeFi landscape which makes it ideal for users who seek to swap, borrow, and lend their crypto to secure returns.

Interoperability

Karura enjoys a high level of interoperability within the industry. The system integrates a cross-chain exchange that supports the most popular DeFi assets. Additionally, the protocol enables users to select their reward payout token.

Staking Support

Another major advantage that Karura brings to the table is its rapid un-staking. There is no delay when you want to un-stake your funding. This is a big upgrade from other protocols that will make you wait days in some instances to unlock your funding. Karura users can avoid easy-to-spot losses by keeping their staked assets available when needed.

Karura (KAR) - Homepage

Karura (KAR) – Homepage

How Does Karura Work?

Karura is an advanced fourth-generation blockchain protocol that operates on the Kusama blockchain. It was founded by Acala Network and operates as a sister project to that venture. Notably, Kusuma is a para chain to the Polkadot blockchain ecosystem.

As a member of the Polkadot ecosystem, Karura enjoys the plug-and-play security offered by the network. It also secures full interoperability within that space and other independent blockchains using Polkadot as a bridge. These features combined with automated liquidity provisioning aspects of the Dapp make it a popular option for users and developers seeking to try new options.

Kusuma Blockchain

The core layer of technology for the protocol is the Kusuma blockchain. Notably, Karura operates as both a layer-1 blockchain and a comprehensive collection of DeFi tools. The system is fully decentralized with network nodes verifying transactions rather than a centralized group of developers.

Polkadot Ecosystem

Parachains are independent blockchains that operate within the Polkadot ecosystem. They all connect to the main Polkadot blockchain that functions as a terminal for these independent networks to communicate. Polkadot often offers lower gas and transaction fees than Ethereum.

Liquid KSM

The Liquid KSM feature is a game changer in the DeFi space. This trustless staking derivative enables you to secure passive income without tying up your liquidity. When you stake your tokens you receive an equivalent amount of staking tokens. These tokens can be traded, sold, or saved. They can be converted back to the original asset at any time as well.

AMM DEX

The Karura AMM (Automated Market Maker) DEX provides the user with a viable alternative to Uniswap and other similar options. The DEX offers a more reasonable gas fee structure and can support massive trading volume without any delays. Currently, the Karura DEX provides the Polkadot ecosystem with a secure way to exchange digital assets.

Karura (KAR) Token

KAR is the main utility token of the network. It’s how developers pay for smart contract execution. It’s also the primary reward token for the system. You can stake KAR and secure passive returns. You also receive LS tokens which enable you to secure more ROIs. The KAR token has a limited supply of 100,000,000 over the life of the project.

aUSD

The Karura Dollar is the main stablecoin for the system. This digital asset operates in a decentralized manner and is backed by a basket of collateralizing assets across multiple blockchains. Users can secure returns by lending out aUSD or providing liquidity to pools. Notably, aUSD is pegged to the value of the US dollar.

Consensus

Karura shares plug-and-play consensus with the Polkadot ecosystem, The network uses the Polkadot Relay Chain to settle transactions and remain secure. Polkadot leverages a hybrid consensus module called GRANDPA (GHOST-based Recursive Ancestor Deriving Prefix Agreement) to remain scalable and responsive.

How to Buy Karura (KAR)

Currently, Karura (KAR) is available for purchase on each of the following exchanges.

Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.

The Kraken exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)

KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens.  It is often the first to offer buying opportunities for new tokens.  This exchange currently accepts International & United States residents.

Karura (KAR) – Polkadot Kicks Up The Competition

Karura represents another significant milestone for the Polkadot ecosystem. The protocol provides users access to the most popular DeFi options via an easy-to-navigate interface. The scalability and overall convenience of the platform, coupled with low fees, continues to drive adoption. You can expect to see this trend continues as Polkadot’s ecosystem continues to expand in all directions.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com